Chapter9: Receivables [Type text] [Type text] Receivables
|
|
- Oscar Carson
- 5 years ago
- Views:
Transcription
1 Chapter9: Receivables [Type text] [Type text] Receivables The receivables that result from sales on account are normally: accounts receivable or notes receivables. Receivables includes all money claims against other entities, including people, companies, and other organization. The common classes of receivables: 1. Accounts receivable are normally expected to be collected within a relatively short period, such as 30 or 60 days. The most common transaction creating a receivable is selling goods or services on account (on credit). 2. Notes receivable are amounts that customers owe for which a formal, written instrument of credit has been issued. *Often used for credit periods of more than 60 days. 3. Other receivables expected to be collected within one year are classified (separately) as current assets. If collection is expected beyond one year, the receivables are classified as non-current assets and reported under the caption Investments. Examples of other receivables include: Interest receivable Taxes receivable Receivables from officers or employees Accounting for uncollectible receivables (Some accounts receivable will be uncollectable) Companies often sell their receivables to other companies. This is called factoring the receivables, and the buyer of the receivables is called a factor. Regardless of how careful a company is in granting credit, some credit sales will be uncollectible. The operating expense recorded from uncollectible receivables is called bad debt expense, uncollectible accounts expense, or doubtful accounts expense. Some indications that an account may be uncollectible include the following: The receivable is past due. The customer does not respond to the company s attempts to collect. The customer files for bankruptcy. The customer closes its business. The company cannot locate the customer. Shatha Alsalem 1
2 [Type text] [Type text] [Type text] Two methods of accounting for uncollectible receivables are as follows: 1. The direct write-off method of accounting for uncollectible receivables records bad debt expense only when an account is determined to be worthless (usually used by small companies and companies with few receivables) 2. The allowance method records bad debt expense by estimating uncollectible accounts at the end of the accounting period (used by companies that have large amount of receivables). 1. Direct write-off method of accounting for uncollectible receivables. Bad Debt Expense is not recorded until the customer s account is determined to be worthless. At that time, the customer s account receivable is written off. Exercise: On May 10, a $4,200 account receivable from D. L. Ross has been determined to be uncollectible. The account written off on May 10 is later collected on November 21. (PE 9-1A, PE 9-1B page 425 & EX 9-3 page 427) 2. The allowance method of accounting for uncollectible receivables estimates the uncollectable accounts receivable at the end of the accounting period. Exercise: On December 31, ExTone Company estimates that a total of $30,000 of the $200,000 balance of their accounts receivable will eventually be uncollectible. The specific customer accounts cannot be decreased, so a contra account, Allowance for Doubtful Accounts, is credited. The net amount that is expected to be collected $170,000 ($200,000 $30,000) is called Net realizable value (NRV) of the receivables. The adjusting entry reduces receivables to the NRV, and matches uncollectible/bad debt expenses (30,000) with revenues in the Income statement. Accounts Receivable still has a debit balance of $200,000 at that time 2 [Type the document title]
3 Chapter9: Receivables [Type text] [Type text] On January 21, John Parker s account of $6,000 is written off because it is uncollectible. Assuming that during 2012, ExTone Company writes off $26,750 of uncollectible accounts, including the $6,000 account of John Parker. After posting all entries to write off uncollectible amounts, Allowance for Doubtful Accounts will have a credit balance of $3,250 ($30,000 $26,750). If ExTone Company had written off $32,100 in accounts receivable during 2012, Allowance for Doubtful Accounts would have a debit balance of $2,100. Nancy Smith s account of $5,000, which was written off on April 2, is later collected on June 10. Two entries are needed: one to reinstate Nancy Smith s account and a second to record receipt of the cash. (PE9-2A, PE9-2B page 425 & EX 9-4 page 427) Shatha Alsalem 3
4 [Type text] [Type text] [Type text] *The allowance method requires an estimate of uncollectible accounts at the end of the period. The estimate is normally based on past experience, industry averages, and forecasts of the future. Two methods are used to estimate the amount debited to Bad Debt Expense: 1. Percent of sales method 2. Analysis of receivable method 1. Percent of sales method: Since accounts receivable are created by credit sales, uncollectable accounts can be estimated as a percent of credit sales, if the portion of credit sales to sales is relatively constant, the percent may be applied to total sales or net sales. Example: If ExTone Company s credit sales for the period are $3,000,000 and it is estimated that 3/4% will be uncollectible; Bad Debt Expense is debited for $22,500 ($3,000,000 x.0075). This approach disregards the balance of $3,250 in the allowance account before the adjustment. After the following adjusting entry on December 31 is posted, Allowance for Doubtful Accounts will have a balance of $25,750 ($3,250 + $22,500). PE9-3A: At the end of the current year, Accounts Receivable has a balance of $325,000; Allowance for Doubtful Accounts has a credit balance of $3,900; and net sales for the year total $4,500,000. Bad debt expense is estimated at ½ of 1% of net sales Determine (a) the amount of the adjusting entry for uncollectable accounts; 4,500,000 x.005= 22,500 (b) the adjusted balances of Accounts Receivable, Allowance for Doubtful account, and Bad Debt Expense; Account receivables= 325,000 Allowance for Doubtful account= 3,900+22,500= 26,400 Bad Debt Expense= 22,500 (c) The net realizable value of accounts receivable. 325,000-26,400 = $298,600 (P-E 9-3B page 425) 4 [Type the document title]
5 Chapter9: Receivables [Type text] [Type text] 2. Analysis of receivable method The longer an account receivable is outstanding, the less likely it is that it will be collected. Basing the estimate of uncollectible accounts on how long specific amounts have been outstanding is called aging the receivables. ExTone Company has an unadjusted credit balance of $3,250 in Allowance for Doubtful Accounts. In Exhibit 1, the estimated uncollectible accounts totaled $26,490. The amount to be added to the allowance account is $23,240 ($26,490 $3,250). The adjusting entry is as follows: After the preceding adjusting entry is posted to the ledger, ExTone Company s Allowance for Doubtful Accounts will have an adjusted balance of $26,490. This is the amount that was determined by aging the accounts. (PE9-4A, PE9-4B page 426) Comparing Methods The primary differences between the direct write-off and allowance methods are summarized below. Shatha Alsalem 5
6 [Type text] [Type text] [Type text] Notes Receivables A note receivable, or promissory note, is a written document containing a promise to pay the face amount, usually with interest. Characteristics of Notes Receivable/ promissory note are as follows: The maker is the party making the promise to pay. The payee is the party to whom the note is payable. The face amount is the amount the note is written for on its face. The issuance date is the date a note is issued. The due date or maturity date is the date the note is to be paid. The term of a note is the amount of time between the issuance and due dates The interest rate is the rate of interest that must be paid on the face amount for the term of the note. The maturity value is the amount that must be paid at the due date of the note, which is the sum of the face amount and the interest. Due Date of a 90-day Note (issued 16 March) Total days in note 90 days Number of days in March 31 Issue date of note, March 16 (16) Remaining days in March 15 days Number of days in April 30 Number of days in May 31days Residual days in June (14) days Received a $6,000, 12%, 30-day note dated November 21, 2012, in settlement of the account of W. A. Bunn Company. 6 [Type the document title]
7 Chapter9: Receivables [Type text] [Type text] On December 21, when the note matures, the firm receives $6,060 from W. A. Bunn Company ($6,000 face amount plus $60 interest). Interest= Face Amount x Interest Rate x (term/ 360 days) If W. A. Bunn Company fails to pay the note on the due date; it is considered a dishonored note receivable. The note and interest are transferred back to the customer s account receivable. Example: A 90-day, 12% note dated December 1, 2012, is received from Crawford Company to settle its account, which has a balance of $4,000. Assuming that the accounting period ends on December 31, an adjusting entry is required to record the accrued interest of $40 ($4,000 x 0.12 x 30/360). On March 1, 2013, $4,120 is received for the note ($4,000) and interest ($120). (PE 9-5A, PE9-5B page 426) Shatha Alsalem 7
8 [Type text] [Type text] [Type text] Reporting Receivables on the Balance Sheet 8 [Type the document title]
Click to edit Master title style
1 9 Receivables 1 2 After studying this chapter, you should be able to: 1. Describe the common classifications of receivables. 2. Describe the nature of and the accounting for uncollectible receivables.
More informationChapter 8 - REPORTING AND ANALYZING INVENTORY
Revised Summer 2018 Chapter 8 Review 1 Chapter 8 - REPORTING AND ANALYZING INVENTORY LO 1: Explain how companies recognize accounts receivable. RECEIVABLES Amounts due from individuals and companies that
More informationClick to edit Master title style
1 Adeng Pustikaningsih, M.Si. Dosen Jurusan Pendidikan Akuntansi Fakultas Ekonomi Universitas Negeri Yogyakarta CP: 08 222 180 1695 Email : adengpustikaningsih@uny.ac.id 1 2 9 Receivables 2 3 After studying
More informationCHAPTER 7 ACCOUNTING FOR RECEIVABLES
CHAPTER 7 ACCOUNTING FOR RECEIVABLES Key Terms and Concepts to Know Accounts Receivable: Result from sales on account (credit sales), not cash sales. May also result from credit card sales if there is
More informationNotes Receivable A note is a written promise to pay a specific amount at a specific future date. Includes an interest cost for the term of the note
RECEIVABLES Accounts Receivable Amounts due from customers for credit sales. Credit sales require: o Maintaining a separate account receivable for each customer. o Accounting for bad debts that result
More informationAccounting Glossary 1. an equation showing the relationship among assets, liabilities, and
Accounting Glossary 1 GLOSSARY A Account a record summarizing all the information pertaining to a single item in the accounting equation. (p. 10) Account balance the amount in an account. (p. 10) Account
More informationAllowance Method of Recording Losses from Uncollectible Accounts
Learning Objectives LO1 Explain the purpose of the allowance method for recording losses from uncollectible accounts. LO2 Estimate uncollectible accounts expense using an aging of accounts receivable.
More informationReceivable and Sales C AT EDRÁTICO U PR R I O P I EDRAS S EG. S EM
Receivable and Sales E DWIN R ENÁN MALDONADO C AT EDRÁTICO U PR R I O P I EDRAS S EG. S EM. 2 017-18 Textbook: Financial Accounting, Spiceland This presentation contains information, in addition to the
More information26/04/2015. Chapter 9. Receivables
Chapter 9 Receivables PowerPoint to accompany: Learning objectives Define and explain common types of receivables and review internal controls for receivables Describe how bad debts arise Use the allowance
More informationAccounting Practice Test
Accounting Training Unlimited ~ www.atunlimited.com ~ info@atunlimited.com Page 1 Accounting Practice Test Table of Contents Accounting Practice Test... 3 Accounting Practice Test Answer Sheet... 9 Accounting
More informationAccounting for Receivables
9 Accounting for Receivables Learning Objectives 1 2 3 4 Explain how companies recognize accounts receivable. Describe how companies value accounts receivable and record their disposition. Explain how
More informationTalking Accounting Definitions
Talking Accounting Definitions Introduction to Accounting week 1 Accounting The information system that measures business activities, processes that information into reports, and communicates the result
More informationAccounting for Receivables
8-1 Chapter 8 Accounting for Receivables 8-2 Learning Objectives After studying this chapter, you should be able to: 1. Identify the different types of receivables. 2. Explain how companies recognize accounts
More informationACCOUNTING 201. PRACTICE FINAL - (Covering Chapters 6-9)
Problem - I Multiple Choice Circle the one best answer. ACCOUNTING 201 PRACTICE FINAL - (Covering Chapters 6-9) 1. Inventoriable costs include all of the following except the a. cost of the goods purchased.
More informationKey Learning: Students will review basic accounting concepts learned in the first level course.
Student Learning Map for Unit Topic: Review of Accounting I Concepts Rev. 1/14 Key Learning: Students will review basic accounting concepts learned in the first level course. How does a business organize
More informationColumn II. 2. Crediting the estimated value of uncollectible accounts to a contra account. (p. 412)
Study Guide 14 Name Part One Identifying Accounting Terms Identifying Accounting Terms Analyzing Accounts Receivable and Notes Receivable Journalizing Accounts Receivable and Notes Receivable Transactions
More informationof credit sales, total sales can be used. Dec. 31 Bad Debts Expense 2.400
Chapter 9 Accounting for Receivables Musicland estimates 0.6% of credit sales to be uncollectible. This implies that Musicland Point: Focus is on credit sales because expects $2,400 of bad debts expense
More informationACCOUNTING FOR NOTES RECEIVABLE
ACCOUNTING FOR NOTES RECEIVABLE Key Terms and Concepts to Know Notes Receivable: May have any duration from a day or two up to many years. Long-term notes receivable may be used to finance the purchase
More informationFill-in-the-Blank Equations. Exercises
Chapter 8 Receivables Study Guide Solutions 1. Net realizable value Fill-in-the-Blank Equations 2. Credit 3. Face amount 4. Maturity value 5. Average accounts receivable 6. Average daily sales Exercises
More informationFill-in-the-Blank Equations. Exercises
Chapter 8 Receivables Study Guide Solutions 1. Net realizable value Fill-in-the-Blank Equations 2. Credit 3. Face amount 4. Maturity value 5. Average accounts receivable 6. Average daily sales Exercises
More informationTwin Valley School District. What is the purpose and importance of accounting? Who are the users of accounting information?
Twin Valley School District Subject/Course: Advanced Accounting Course Objective: Students need to become familiar with financial accounting information and reports in order to make financial decisions.
More informationLearning Objective. LO1 Prepare an income statement for a merchandising business organized as a corporation.
Learning Objective LO1 Prepare an income statement for a merchandising business organized as a corporation. Lesson 16-1 Uses of Financial Statements LO1 A corporation prepares an income statement and a
More informationFinancial Accounting, 1e Chapter 7: Cash and Receivables Test Item File
Financial Accounting, 1e Chapter 7: Cash and Receivables Test Item File 7.0-1 Credit sales are the most desirable form of sales. LO: 7-0 EOC Ref: Introduction 7.0-2 The most common credit cards issued
More informationAccounting Principles
Accounting Principles Second Canadian Edition Weygandt Kieso Kimmel Trenholm Prepared by: Carole Bowman, Sheridan College CHAPTER 9 ACCOUNTING FOR RECEIVABLES Hey Sabres Accountants of Tomorrow, look for
More informationPractice Multiple Choice Questions
FINAL EXAM REVIEW The comprehensive final exam consists of 50 questions, approximately 2/3 of which are from chapters 10 through 12. The remaining questions are from chapters 1 through 9. The questions
More informationFBLA Accounting I Practice Test 2004
FBLA Accounting I Practice Test 2004 True/False Indicate whether the sentence or statement is true or false. 1. When a business uses a petty cash fund, the fund is debited each time it is replaced. 2.
More informationChapter 10: Revenue Recognition and Valuation of Receivables
Chapter 10: Revenue Recognition and Valuation of Receivables Overview: What are receivables Recognition of accounts receivable Treatment of sales discounts Gross method, net method Valuation of accounts
More information1. The primary objective of financial reporting is to provide useful information to external decision makers.
Chapter 02 Investing and Financing Decisions and the Accounting System True / False Questions 1. The primary objective of financial reporting is to provide useful information to external decision makers.
More informationBUSA PRACTICAL ACCOUNTING I/II Entiat High School
BUSA 102 - PRACTICAL ACCOUNTING I/II Student Entiat High School 2010-2011 Cycle 1 1 Define and identify asset, liability, and owner s equity accounts. 1.1 2 Define a fiscal period and a fiscal year. 1.1
More informationFINANCIAL ACCOUNTING Week 5 Current Asset Classification, Cash, and Accounts Receivable. I. Overview of First Half and Second Half of Course
FINANCIAL ACCOUNTING Week 5 Current Asset Classification, Cash, and Accounts Receivable I. Overview of First Half and Second Half of Course A. Part I - Foundation in Financial Accounting ( Ratio Analysis
More informationACCOUNTING I. 1. The cash account is used to summarize information about the amount of money the business has available.
ACCOUNTING I True/False Indicate whether the sentence or statement is true or false. 1. The cash account is used to summarize information about the amount of money the business has available. 2. The source
More informationCurriculum Document for Business Education
Curriculum Document for Business Education Course Title: Accounting I Learner Objective #1: Students will learn the accounting equation and how business activities change the accounting equation. Identify
More informationSOLUTIONS Learning Goal 17
Learning Goal 17: Record, Report, and Control Receivable S1 Learning Goal 17 Multiple Choice 1. c Remember that any entry to the Accounts Receivable account also requires an entry to a subsidiary account.
More informationChapter 10: Revenue Recognition and Valuation of Receivables
Chapter 10: Revenue Recognition and Valuation of Receivables The timing of revenue recognition Valuation of receivables; VAT Accounting for bad debt Refinancing receivables before the due date Receivables
More informationAccountings Summary OUTLINE
Accountings Summary OUTLINE 1. Accounting and Business Environment 2. Recording Business Transaction 3. The Adjusting Process 4. Completing the Accounting Cycle 5. Merchandising Operations 6. Accounting
More informationTrue / False Questions
Chapter 02 Transaction Analysis True / False Questions 1. The primary objective of financial reporting is to provide useful information to external decision makers. True False 2. In order for information
More informationCENTURY 21 ACCOUNTING, 9e General Journal Chapter Objectives
CENTURY 21 ACCOUNTING, 9e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting
More informationChapter 6: Reporting and Interpreting Sales Revenue, Receivables and Cash
Chapter 6: Reporting and Interpreting Sales Revenue, Receivables and Cash A. Recognition of Revenue for Merchandising Companies FOB Shipping Point: title switch at shipping point Once you get it to a point
More informationE4-E5 (Management) for BSNL internal circulation only
E4-E5 (Management) Corporate Accounts Introduction Basic understanding of finance is very relevant to our lives. Both in public and private sectors financial competence and understanding are essential
More informationAGENDA: STATEMENT OF CASH FLOWS
TM 14-1 AGENDA: STATEMENT OF CASH FLOWS A. Foundational knowledge. B. Four key concepts for preparing the statement of cash flows. 1. Organizing the statement of cash flows. 2. Distinguishing between the
More informationAccount = the form used to record additions and deductions for each individual asset, liability, owner s equity, revenue, and expense.
A Accelerated depreciation method = a depreciation method that provides for high depreciation expense in the first year of use an asset and a gradually declining expense thereafter. Account = the form
More information3. The following information was taken from Hurlbert Company cash budget for the month June
Unit 3 (Chapters 7-9 Question Review) 1 Unit 3 Exam (Chapters 7-9 Review) 1. A $200 petty cash fund has cash of $32 and receipts of $172. The journal entry to replenish the account would include a a. debit
More informationACC 556 All Chapter Quizzes
ACC 556 All Chapter Quizzes FOR MORE CLASSES VISIT www.acc556outlet.com ACC 556 Chapter 1 Quiz (100% Score) ACC 556 Chapter 2 Quiz (100% Score) ACC 556 Chapter 3 Quiz (100% Score) ACC 556 Chapter 4 Quiz
More informationPE 3 1A Page 131 Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusted entry.
PE 3 1A Page 131 Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusted entry. A. Accumulated Depreciation yes B. Albert Stucky, Drawings No C. Office equipment
More informationFinancial Accounting
Drawings Assets expenses Capital Income Liabilities - Drawings - Capital - Assets - Income - Expenses - Liabilities Dt (Increases) Cr (Increases) Cr (decreases) Dt (decreases) Financial Accounting Financial
More informationCP:
Adeng Pustikaningsih, M.Si. Dosen Jurusan Pendidikan Akuntansi Fakultas Ekonomi Universitas Negeri Yogyakarta CP: 08 222 180 1695 Email : adengpustikaningsih@uny.ac.id 3 The Adjusting Process 2 After studying
More informationAppearance of MOBILE PHONE(S) / Smart device(s) SUBJECT TO CONSIDERED AS AN ACT OF CHEATING. College Name:
BUSINESS COMMUNICATION I; BA (M) 501 (PART B) Date: June 22, 2015 Max Time: 90 Mins Max Marks: 40 1. Attempt any 15 questions. 2. Give brief answers to the following questions. Answers more than 03 lines
More informationThis is In Financial Reporting, What Information Is Conveyed about Receivables?, chapter 7 from the book Business Accounting (index.html) (v. 2.0).
This is In Financial Reporting, What Information Is Conveyed about Receivables?, chapter 7 from the book Business Accounting (index.html) (v. 2.0). This book is licensed under a Creative Commons by-nc-sa
More informationConsolidated Balance Sheet (Law No Section 33)
ASSETS Page 1 of 5 A. CASH AND DUE FROM BANKS 13.359.149 10.276.572.Cash 2.582.869 2.815.005.Banks and Correspondents 10.776.280 7.461.567.BCRA 10.490.468 7.227.804.Other Argentine 33.118 37.752.Foreign
More informationChapter 12 - Reporting and Analyzing Cash Flows. Chapter Outline
I. Basics of Cash Flow Reporting A. Purpose of the Statement of Cash Flows To report cash receipts (inflows) and cash payments (outflows) during a period. This report classifies cash flows into operating,
More informationHow to Record Invoice Factoring Transactions on QuickBooks
How to Record Invoice Factoring Transactions on QuickBooks Copyright 2015 Gateway Commercial Finance, LLC 2 Table of Contents Introduction... 3 Chart of Accounts: Accounts You ll Need... 4 Step 1: Adding
More informationModule 9. Table of Contents
Copyright Notice. Each module of the course manual may be viewed online, saved to disk, or printed (each is composed of 10 to 15 printed pages of text) by students enrolled in the author s accounting course
More informationa. True b. False a. True b. False a. True b. False a. True b. False a. True b. False a. True b. False a. True b. False a. True b.
2005 SLC Accounting II Page 1 Indicate whether the sentence or statement is True or False. Mark A if True or B if False. 1. Most companies have a code of conduct that they distribute and/or communicate
More informationNET SAVINGS LINK, INC. Unaudited Balance Sheets. Cash $ 5,158 - Total Current Assets 5,158 - TOTAL ASSETS 5,158 -
Unaudited Balance Sheets ASSETS 2017 November 30, 2016 Cash $ 5,158 - Total Current Assets 5,158 - TOTAL ASSETS 5,158 - LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities: Accounts payable 84,752
More informationAccounting Vocabulary
Accounting Vocabulary A. Accounting: planning, recording, analyzing and interpreting financial information. Accounting Equation: an equation showing the relationship among assets, liabilities, and owner
More informationAim: to use a general journal entry from the previous lecture (week 2) and post to a T account.
Reconstruction of accounts and error correction 1/07/2017 3:53 PM Lecture T accounting (Part 1) The video lecture for this topic is in two parts, which together look at steps 3-5 of the accounting, cycle
More informationAccounting 3 4. Course Outline. Board Approved: October 10, I. Course Information. A. Course Title: Accounting 3-4. B. Course Code Number: BU143
Accounting 3 4 Course Outline Board Approved: October 10, 1995 I. Course Information A. Course Title: Accounting 3-4 B. Course Code Number: BU143 C. Course Length: One Year D. Grade Level: 12 E. Units
More informationCHAPTER 8. Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE. Brief Exercises Do It! Exercises. A Problems. B Problems
CHAPTER 8 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Identify the different types of receivables.
More informationa) Cash ,000 Accounts Receivable... 2,220,000 Sales... 2,960,000 To record sales; 25% x $2,960,000 total sales = cash sales of $740,000.
Problem 10-3A (30 minutes) Part A 1. a) Cash... 740,000... 2,220,000 Sales... 2,960,000 To record sales; 25% x $2,960,000 total sales = cash sales of $740,000. Cost of Goods Sold... 1,804,000 Merchandise
More informationAdjustments, Financial Statements, and the Quality of Earnings
Adjustments, Financial Statements, and the Quality of Earnings Chapter 4 McGraw-Hill/Irwin 2009 The McGraw-Hill Companies, Inc. Understanding the Business Management is responsible for preparing... Financial
More informationIntermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield. Slide 3-2
3-1 C H A P T E R 3 THE ACCOUNTING INFORMATION SYSTEM Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield 3-2 Learning Objectives 1. Understand basic accounting terminology. 2. Explain double-entry
More informationRecording Business Transactions
2-1 Recording Business Transactions Atanas Atanasov Assist.prof., University of Economics - Varna 2-2 Tools of The Recording Process Debits and Credits Journal Entries Ledger Accounts First, however, let
More informationWILEY IFRS EDITION. Accounting for Receivables PREVIEW OF CHAPTER 8. Financial Accounting IFRS 3rd Edition Weygandt Kimmel Kieso CHAPTER
WILEY IFRS EDITION Prepared by Coby Harmon University of California, Santa Barbara 8-1 Westmont College PREVIEW OF CHAPTER 8 8-2 Financial Accounting IFRS 3rd Edition Weygandt Kimmel Kieso 8 CHAPTER Accounting
More informationName: MEMORIAL UNIVERSITY OF NEWFOUNDLAND FACULTY OF BUSINESS BUSINESS 6100 TERM TEST # 2 - Value - 30% of your final grade March 2016 Version 1
Name: MEMORIAL UNIVERSIY OF NEWFOUNDLAND FACULY OF BUSINESS BUSINESS 6100 ERM ES # 2 - Value - 30% of your final grade March 2016 Version 1 Question Marks Suggested ime 1 12 9 minutes 2 15 11 minutes 3
More information10. Describe an account and its use in recording transactions.
1MODULE learning objective Accounting in Business, Analyzing Transactions, and Preparing Journal 10. Describe an account and its use in recording transactions. 1. THE ACCOUNT AND ITS ANALYSIS An account
More informationA Review of the Accounting Cycle
CHAPTER 2 A Review of the Accounting Cycle LEARNING OBJECTIVES 1. Identify and explain the basic steps in the accounting process (accounting cycle). Analyze business documents, Journalize transactions,
More informationADVANCED ACCOUNTING (110) Secondary
Page 1 of 10 Contestant Number: Time: Rank: ADVANCED ACCOUNTING (110) Secondary REGIONAL 2017 Multiple Choice (20 @ 2 points each) Short Answers (18 @ 3 points each) Problems: Job 1 Classifying Accounts
More informationAfter studying this chapter, you should be able to: adjusted account balances.
4 Completing the Accounting Cycle 1 After studying this chapter, you should be able to: 1. Describe the flow of accounting information from the unadjusted trial balance into the adjusted trial balance
More informationIMPRESSION 5 SCIENCE CENTER REPORT ON FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2017 AND 2016
REPORT ON FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2017 AND 2016 1 C O N T E N T S Page Independent auditor s report... 3-4 Financial statements: Statements of financial position... 5 Statements
More informationReceivables TYPES OF RECEIVABLES. Chapter 12. Accounts receivable Bills receivable Other receivables
Chapter 12 Receivables PowerPoint presentation by Anne Abraham University of Wollongong 2009 John Wiley & Sons Australia, Ltd TYPES OF RECEIVABLES Accounts receivable Bills receivable Other receivables
More informationPaper N0:15. Solved by Chanda Rehman, Nomi chakwal ABr FINALTERM EXAMINATION. Fall MGT101- Financial Accounting (Session - 4)
Paper N0:15 Solved by Chanda Rehman, Nomi chakwal ABr FINALTERM EXAMINATION Fall 2009 MGT101- Financial Accounting (Session - 4) Time: 120 min Marks: 87 Question No: 1 ( Marks: 1 ) - Please choose one
More informationCOUNSEL JUDGES OPINION
1 MERCHANT V. WORLEY, 1969-NMCA-001, 79 N.M. 771, 449 P.2d 787 (Ct. App. 1969) Lon D. MERCHANT, Plaintiff, vs. Haskell WORLEY, Defendant-Appellant, Security National Bank of Roswell, New Mexico, Defendant-Appellee
More informationTHE PUBLIC ACCOUNTANTS EXAMINATION COUNCIL OF MALAWI 2014 EXAMINATIONS FOUNDATION STAGE PAPER 1: ACCOUNTING FRAMEWORK
EXAMINATION NO. THE PUBLIC ACCOUNTANTS EXAMINATION COUNCIL OF MALAWI 2014 EXAMINATIONS FOUNDATION STAGE PAPER 1: ACCOUNTING FRAMEWOR MONDAY, 2 JUNE 2014 TIME ALLOWED : 3 HOURS 9.00 AM 12.00 NOON INSTRUCTIONS:
More information35. (I) Compute the purchase price of the transaction.
35. Wesellit, Inc. sold some land to WePayLater, Inc. The agreed price was $1,000,000 payable in $700,000 cash and a $300,000 0% note due in 2 years. Had WePayLater gone out to a bank to borrow the money,
More informationAccounting 1A Class Notes Chapter 3 The Adjusting Process
Source Documents General Journal General Ledger Trial Balance Adjusting Entries Difference between TRANSACTIONS and ADJUSTMENTS Transactions occur through-out the accounting cycle and normally involve
More informationNET SAVINGS LINK, INC. Unaudited Balance Sheets. December 31, December 31, 2017 ASSETS $ $
Unaudited Balance Sheets December 31, December 31, 2018 2017 ASSETS $ $ Non-Current Assets: Investment in subsidiary 400,000 400,000 Total Non-Current Assets 400,000 400,000 Current Assets: Cash - 1,888
More informationCh.2 A Review of the Accounting Cycle
Ch.2 A Review of the Accounting Cycle 1. Basic steps in the accounting process (accounting cycle) 2. Analyze transactions and make and post journal entries 3. Make adjusting entries, produce financial
More informationBusiness Background Management is responsible for preparing...
Business Background Management is responsible for preparing... Financial Statements High Quality = Relevance + Reliability... Are useful to investors and creditors. Business Background Revenues are recorded
More informationIntermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield 7-2
7-1 C H A P T E R 7 CASH AND RECEIVABLES Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield 7-2 Learning Objectives 1. Identify items considered cash. 2. Indicate how to report cash and
More informationDisclaimer: This resource package is for studying purposes only EDUCATON
Disclaimer: This resource package is for studying purposes only EDUCATON Chapter 1 Objective of Accounting: 1. To identify and measure activities of a business entity in order to evaluate its performance
More informationCHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM. MULTIPLE CHOICE Conceptual. Test Bank Chapter 3
CHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM MULTIPLE CHOICE Conceptual Answer No. Description d 1. Purpose of an accounting system. d 2. Criteria for recording events. c 3. Purpose of trial balance. b
More informationThe Adjustment Process and Financial Statements Irwin/McGraw-Hill
Chapter 4 The Adjustment Process and Financial Statements Business Background: The Accounting Cycle Phase 1: During the Accounting Period. Start of the Accounting Period! Perform transaction analysis.!
More informationExamination: Financial Accounting Mid Term, Spring 2008 Examiner: Prof. Dr. Barbara Schöndube-Pirchegger
Examination: 11052 Financial Accounting Mid Term, Spring 2008 Examiner: Prof. Barbara Schöndube-Pirchegger First name: Last name: Matriculation number: The following aid can be used: non-programmable calculator
More informationST. MARY S UNIVERSITY BUSINESS FACULTY DEPARTMENT OF ACCOUNTING
ST. MARY S UNIVERSITY BUSINESS FACULTY DEPARTMENT OF ACCOUNTING AN ASSESSMENT OF RECEIVABLE MANAGEMENT IN OROMIA CREDIT & SAVING SHARE COMPANY STADIUM BRANCH BY: MERID BEKELE MESAZGI HABTE SINEWORK TESHOME
More informationCHAPTER 8. Accounting for Receivables 1, 2 1 3, 4, 5, 6, 7 4, 5, 6, 7, 8 12, 13, 14, 15, 16
CHAPTER 8 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Identify the different types of receivables.
More informationpeach07_ch04.qxd 1/29/07 2:35 PM Page 126 C H A P T E R CHAPTER 4
peach07_ch04.qxd 1/29/07 2:35 PM Page 126 C H A P T 4 126 CHAPTER 4 E R peach07_ch04.qxd 1/29/07 2:35 PM Page 127 ACCOUNTS RECEIVABLE and SALES F O R A S E RV I C E B U S I N E S S LEARNING OBJECTIVES
More informationHELEN PORTER NURSING HOME, INC.
FINANCIAL STATEMENTS With Independent Auditor's Report TABLE OF CONTENTS Page Independent Auditor's Report 1-2 Financial Statements Balance Sheets 3 Statements of Operations 4 Statements of Changes in
More information3. Balance sheet accounts are referred to as temporary accounts because their balances are always changing.
Chapter 02 Review of the Accounting Process True / False Questions 1. Owners' equity can be expressed as assets minus liabilities. True False 2. Debits increase asset accounts and decrease liability accounts.
More informationChapter 4: Completing the Accounting Cycle
1 Chapter 4 Completing the Accounting cycle Chapter 4: Completing the Accounting Cycle Learning Objective 1 Describe the financial statements of a proprietorship and explain how they interrelate. Financial
More informationBATTLE GROUND ACADEMY OF FRANKLIN, TENNESSEE FINANCIAL STATEMENTS. June 30, 2012 and 2011
BATTLE GROUND ACADEMY OF FRANKLIN, TENNESSEE FINANCIAL STATEMENTS TABLE OF CONTENTS Independent Auditor s Report... 2 Financial Statements: Statements of Financial Position... 3 Statements of Activities...
More informationChapter 2 Review of the Accounting Process
True/False Questions 1. Owners' equity can be expressed as assets minus liabilities. True Learning Objective: 1 Level of Learning: 1 2. Debits increase asset accounts and decrease liability accounts. True
More informationFin621 Online Quizzes & Papers GURU
1.If the inventory shrinkage at the end of the year is overstated by $7,500, the error will cause an: A.. understatement of net income for the year by $7,500 B.. understatement of cost of merchandise sold
More informationRate = 1 n RV / C Where: RV = Residual Value C = Cost n = Life of Asset Calculate the rate if: Cost = 100,000
Solved by ABr & Chanda Rehman Final MCQs It is supposed that on 31st December, 2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 10% of the sundry
More informationWEATHERFORD COLLEGE FOUNDATION, INC. A Component Unit of Weatherford College
Annual Financial Report For The Years Ended August 31, 2017 and 2016 TABLE OF CONTENTS PAGE Financial Section Independent Auditor's Report Statements of Financial Position Statements of Activities Statements
More informationADVANCED ACCOUNTING (110) Secondary
Page 1 of 10 Contestant Number: Time: Rank: ADVANCED ACCOUNTING (110) Secondary REGIONAL 2017 Multiple Choice (20 @ 2 points each) Short Answers (18 @ 3 points each) Problems: Job 1 Classifying Accounts
More informationCHAPTER 9. BE9-1 a) employee advances - other receivable b) promissory note - note receivable c) sold goods on account - accounts receivable
CHAPTER 9 BE9-1 a) employee advances - other receivable b) promissory note - note receivable c) sold goods on account - accounts receivable BE9-2 a) July 1 A/R - Cambridge Inc. 14,000 Sales 14,000 sold
More informationModule 3 Exhibits and Key Terms. Table of Contents. 1 Principles of Accounting Adjustments for Financial Reporting
Table of Contents Exhibit 14: Cash basis and accrual basis of accounting compared... 2 Exhibit 15: Summary fiscal year ending by Month... 2 Exhibit 16: Two classes and four types of adjusting entries...
More informationBixby Public Schools Essential Elements Grade: 10-12
Course: Accounting Essential Elements Grade: 10-12 Weeks 1-6 Chapter 1 describes how a proprietorship is started & the transactions that occur when the business is organized. The accounting equation is
More information9. The net cost of purchases for Ted Company a. $44,000. b. $43,000. c. $47,000. d. $45,000. e. None of the above.
VERSION 1 1. If Ace Inc. accrues $3,000 for interest payable at the end of the year: a. assets do not change and liabilities increase by $3,000. b. assets increase and liabilities increase $3,000. c. assets
More informationWIDENER UNIVERSITY FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2015 AND 2014
FINANCIAL STATEMENTS YEARS ENDED TABLE OF CONTENTS YEARS ENDED INDEPENDENT AUDITORS REPORT 1 FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION 3 STATEMENTS OF ACTIVITIES 4 STATEMENTS OF CASH FLOWS
More information